Is the iPhone a 'monopoly'?

A judge has OKed a class-action lawsuit against Apple and AT&T on behalf of everyone who's ever bought an iPhone. Should Steve Jobs be worried?

The iPhone 4.
(Image credit: Corbis)

A federal judge is allowing a class-action lawsuit that accuses Apple and AT&T of creating a monopoly with their exclusive iPhone agreement to move forward. The class now includes everyone who's bought an iPhone in the U.S. and signed a two-year provider contract with AT&T. The plaintiffs claim that Apple "secretly" signed a five-year exclusivity contract with AT&T, which has effectively required any iPhone customer to remain with the wireless carrier for far longer than was stipulated in the standard two-year contract. Neither company has commented. How much merit does the case have? (Watch a report about the class-action suit)

Finally, some justice! It's about time, says Jason Perlow in ZDNet. Apple's relationship with AT&T has "screwed up the wireless industry in the United States for years." Obviously, "carriers should not be allowed to have exclusive agreements with handset makers." This unfairly limits customers' ability "to easily migrate from one carrier to another." And lawsuits like this one are what Apple gets for being a control freak with its product.

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